Singareni receives Rs 40 cr escrow refund after closure of Dorli-2 mine

Kothagudem: The Singareni Collieries Company Limited (SCCL) has achieved a significant milestone in sustainable mining, with the Coal Controller Organisation (CCO) under the Union Ministry of Coal approving the refund of nearly Rs 40 crore, including interest, for the successful closure of the Dorli-2 opencast mine in the Bellampalli area. The refund has been granted after the central agency verified that SCCL fully implemented all environmental protection, land reclamation, rehabilitation and statutory mine closure measures stipulated under the approved Mine Closure Plan.

According to SCCL, the company had deposited Rs 26.79 crore as an escrow fund with the State Bank of India at the commencement of the project during 2013-14, as mandated under coal mining regulations to ensure compliance with environmental and mine closure obligations.

Following seven years of coal production, the Dorli-2 mine was closed during 2023-24. Throughout its operational period, SCCL carried out phased implementation of environmental restoration and rehabilitation measures.

A third-party audit conducted in July 2024 by the Indian Institute of Engineering Science and Technology (IIEST), Shibpur, West Bengal, confirmed that all mine closure commitments had been satisfactorily fulfilled and that SCCL had adhered to the prescribed standards.

Based on the audit findings, the Coal Controller Organisation approved the release of the escrow deposit along with accrued interest. Of the total refundable amount, 90 per cent, amounting to Rs 36.63 crore, is being released immediately, while the remaining 10 per cent will be disbursed after examination of provisions related to Just Transition measures.

SCCL said the refund reflects its commitment to environmental sustainability, transparency and responsible mine closure practices.